With 22 fewer taxes in 20 months, Javier Milei advances his fiscal plan, but the provinces are not cooperating and maintain the tax burden.

Since assuming the presidency, Javier Milei promised to eliminate or reduce taxes as the fiscal surplus consolidated. In his first 20 months in office, the libertarian administration implemented 22 tax reductions, although it also implemented three specific increases. However, tax experts agree that without the support of provincial and municipal governments, the positive impact on citizens' daily finances will remain limited.

" One of the government's pillars was achieving and maintaining a fiscal surplus ," explained Sebastián Domínguez , partner at SDC Asesores Tributarios. According to his analysis, tax cuts cannot compromise this balance, although they must be maintained as a permanent policy . For Domínguez, the recent passage of laws that imply spending increases—such as the new calculation for pensions or university funding—could strain this policy. The President has already announced that he will veto these laws, but if Congress insists, new adjustment measures will have to be adopted.

César Litvin , another renowned tax expert, asserted that the government has been consistent with its approach, although he emphasized that "a structural reform is needed" that includes the federal system, where provinces and municipalities also have taxing powers. " The nation made a significant effort, but the provinces are not following suit. Some municipalities have even raised taxes, which creates negative tax competition ," he stated.

Among the 22 tax relief measures, the following stand out:

• The elimination of withholding taxes on temporary and permanent agricultural exports.
• The reduction of internal taxes on cars, cell phones, televisions, and air conditioners.
• Tariff reductions on textiles, footwear, capital goods, and electric cars.
• Changes in Income (higher deductions) and Personal Property (higher non-taxable minimum).
• Modifications to the Monotributo with a higher cap and new categories for professionals.

Also notable is the elimination of the PAIS Tax at the end of 2024, originally introduced by Alberto Fernández 's administration. Another measure was the new tax whitening with very low rates and no penalties.

Despite the talk of lower taxes, there were three increases during the administration: the initial increase in the PAIS tax (which was later repealed), the reinstatement of the income tax for high-income employees, and the adjustment of Monotributo (Monotributo) rates, which particularly affected the lowest income brackets.

Domínguez clarified that these increases were linked to the need to achieve fiscal balance during the first term of his administration. "It's likely that if Congress imposes new burdens on the State, the Executive branch will have to adjust elsewhere," he warned.

Diego Fraga , a specialist at the Expansion Business firm, agreed that "the most distorting taxes, such as Gross Income Tax or municipal Health and Safety taxes, should be replaced with a more transparent system, such as a 'super VAT.'" He also considered it necessary to eliminate the check tax and complete the elimination of withholdings.

Along these lines, Litvin emphasized that "the Gross Income Tax is the worst in the Argentine system" and that municipalities must end taxes that hinder competitiveness. " Today we see banks and companies moving to less greedy jurisdictions ," he explained.

Beyond the national government's fiscal efforts, the real bottleneck lies in the provinces and municipalities, which resist tax cuts to protect their coffers and the privileges of their political structures. While Milei moves forward with reforms to relieve taxpayers, many local governments continue to impose distorting and arbitrary taxes, undermining the positive impact of national policies.